According to Paragraph 1 of Article 21 of the Labor Standards Act: “Wages are to be discussed and agreed upon between the employee and the employer but may never be below the minimum wages,” employer shall pay employees wages in accordance with the terms agreed upon in the labor contract and the wages shall never be lower than the minimum wages.

According to CLA, in the event that an employer deems it necessary to reduce work hours and wages due to economic recessions, negotiations with as well as agreement from the employed in advance are required. The employer shall in no event enforce so-called “leave without pay” unilaterally.

The “Labor-Management Work Hour Reduction Agreement” (sample)” announced by CLA has been designed chiefly to provide concrete regulations as references for matters of concern during negotiations. The key points include 1) the duration and approach of work hour and pay reduction, 2) the terms for part-time jobs during the period, 3) the New Labor Pension System, and 4) the principle and payment criteria for work on non-working days.

CLA points out further that when during negotiation, the employer and the employed may refer to the principle of honesty and mutual trust described in the “Labor-Management Work Hour Reduction Agreement” as well as related regulations currently in effect, such as the monthly wages of full-time employees shall never fall below stipulated minimum wages (NT$17,280) even after reduction of work hours and pay, and, as required by law, the number of days of “leave without pay” shall be deducted when average wages are calculated.